We discuss certain recent mathematical advances, mainly due to Perelman, in the theory of Ricci flows and their relevance for renormalization group (RG) flows. We consider nonlinear sigma models with closed target manifolds supporting a Riemannian metric, dilaton, and 2-form B-field. By generalizing recent mathematical results to incorporate the B-field and by decoupling the dilaton, we are able to describe the 1-loop β-functions of the metric and B-field as the components of the gradient of a potential functional on the space of coupling constants. We emphasize a special choice of diffeomorphism gauge generated by the lowest eigenfunction of a certain Schrödinger operator whose potential and kinetic terms evolve along the flow. With this choice, the potential functional is the corresponding lowest eigenvalue, and gives the order α ′ correction to the Weyl anomaly at fixed points of (g(t), B(t)). The lowest eigenvalue is monotonic along the flow, and since it reproduces the Weyl anomaly at fixed points, it accords with the c-theorem for flows that remain always in the first-order regime. We compute the Hessian of the lowest eigenvalue functional and use it to discuss the linear stability of points where the 1-loop β-functions vanish, such as flat tori and K3 manifolds.